Project Natal

Austin Bram

Rohan Malhorta

Dr. Stanley Coker

Principles of Marketing

October 23, 2009

Introduction:

Embarking on ambitious and new strategic initiatives can give a company tremendous success but it can also bring challenges and failures. CEO of Best Buy, Brad Anderson, had this in mind when he decided to launch two new ideas that he hoped would completely change the firms strategic direction. After Best Buy rose above competitors such as; Radio Shack, CompUSA, and Circuit City, they were met with a tougher set of competitors. Best Buys new competitors, mainly Dell and Wal-Mart, are low-cost businesses. Brad Anderson decided that he needed to implement his new strategies to differentiate Bust Buy from the low-cost competitors.

The first strategy was to offer exceptional customer service in the form of a company called Geek Squad. The new company installs and repairs PCs for your home and small business. The other strategy called “customer centricity” narrowed the target market to five groups of customers. These groups of customers are, affluent technology fans, busy moms, young electronic enthusiasts, price-conscious dads, and small business owners. Marketers researched these groups and designed new products and displays to cater to these five groups.

In addition Best Buy is also going after more retail ideas. A new line of Health related electronic gear and also offering massages and fitness classes. High tech venture capitalist also fell into Best Buys aim. The relationship with High tech venture capitalists helps Bust Buy stay informed about technology developments and help them prepare for the future. The changes and new ideas seem to be working, “Employee turnover dropped from 81 percent in 2005 to 69 percent in 2006.” states Matthew Boyle writer for Money.com.

Conceptualizing the Issues to be Addressed:

With so many changes in the company and its strategic priorities, Best Buy is going through a restructuring process. Best Buy...